Reinsurance Group of America (RGA) has completed a transaction with John Hancock Life Insurance under which the former’s subsidiary acquired an in-force block of individual payout annuities and agreed to reinsure a second block of similar business contracted in New York.
The New York block is subject to customary regulatory approval and is expected to close in the coming months. In aggregate, approximately $3 billion of statutory reserves will transfer to RGA along with a diversified portfolio of assets.
John Hancock will continue to service and administer the policies. The transaction closed on September 26, 2018 with an effective date of July 1, 2018.
RGA global financial solutions executive vice president John Laughlin said: “The combination of a premier insurance carrier and desirable characteristics of the blocks makes this transaction an ideal fit within RGA’s strategic initiative to grow our longevity and asset-intensive business.
“John Hancock is a long-standing partner of RGA, and we very much value their continued confidence in our ability to execute and provide long-term support for their strategic goals.”
In addition, RGA Life Reinsurance Company of Canada (RGA Canada) closed on a transaction with The Manufacturers Life Insurance Company (Manulife) to reinsure mortality and lapse risk from a block of Canadian universal life policies at the end of September.
The transaction was a follow-on to a similar agreement that closed in March 2018. The agreements, which transfer biometric and policyholder behavior but not investment risk, cover approximately 130,000 policies.
RGA Canada president and CEO Alka Gautam said: “RGA Canada worked closely with Manulife to develop a transaction tailored to their specific needs and objectives.
“We have a strong relationship with Manulife and we are proud to have implemented a customized innovative solution for our client.”
Additional terms of the transactions are not being disclosed.
Source: Company Press Release